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Then, using hand-collected voting data, information from the minutes of general meetings and ownership data for the entire Dutch say on pay period (2004–2014), we address and discuss both its direct and its indirect effects.

Our study shows that, although remuneration proposals are seldom rejected, the influence of shareholders on the remuneration policy of the company is considerable.

The central question in this discussion is: how effective is shareholders’ say on pay in practice?Yet, there has been a lot of criticism of these performance-linked remuneration systems.Executive pay is often considered to be ‘excessive’ and regarded as an agency cost in itself.The law provides that the general meeting the remuneration policy, which made the Dutch approach unique for a long period of time.The introduction of say on pay legislation adds another component to the executive pay discussion.

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